00 SENATE CS FOR CS FOR HOUSE BILL NO. 37(FIN) 01 "An Act relating to restricting sale of cigarettes, to enforcement of certain laws 02 relating to sales of cigarettes, and to smoking education and cessation programs 03 administered by the Department of Health and Social Services." 04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 05 * Section 1. AS 43.50 is amended by adding new sections to read: 06 Article 4. Compliance with Federal Laws Relating to Cigarettes. 07 Sec. 43.50.400. Sale or distribution of cigarettes; prohibitions. A person 08 may not 09 (1) sell or distribute to consumers in this state, acquire, hold, own, 10 possess, or transport for sale or distribution in this state, or import or cause to be 11 imported into this state for sale or distribution in this state cigarettes 12 (A) the package of which 13 (i) bears a statement, label, stamp, sticker, or notice 14 indicating that the manufacturer did not intend the cigarettes to be sold, 01 distributed, or used in the United States, including labels stating, "for 02 export only," "U.S. tax-exempt," "for use outside U.S.," or similar 03 wording; or 04 (ii) does not comply with all requirements of federal law 05 regarding health warnings and other information on packages of 06 cigarettes manufactured, packaged, or imported for sale, distribution, or 07 use in the United States, including the warning labels required by 15 08 U.S.C. 1333 (Federal Cigarette Labeling and Advertising Act), and all 09 federal trademark and copyright laws; 10 (B) imported into the United States on or after January 1, 2000, 11 in violation of 26 U.S.C. 5754; or 12 (C) for which a list of the ingredients added to tobacco in the 13 manufacture of those cigarettes has not been submitted to the Secretary of the 14 United States Department of Health and Human Services as required under 15 15 U.S.C. 1335a (Federal Cigarette Labeling and Advertising Act); 16 (2) alter a package of cigarettes before sale or distribution to the 17 consumer so as to remove, conceal, or obscure 18 (A) a statement, label, stamp, sticker, or notice described in 19 (1)(A)(i) of this section; or 20 (B) any health warning, including a health warning that is 21 specified in 15 U.S.C. 1333 (Federal Cigarette Labeling and Advertising Act). 22 Sec. 43.50.410. Imported cigarettes: requirements. A person that imports 23 into this state for sale or distribution in this state cigarettes manufactured outside of 24 the United States shall file with the department, on or before the last day of each 25 calendar quarter, for the cigarettes that the person imported into this state in the 26 preceding calendar quarter, a statement signed by the person under penalty of perjury 27 that the commissioner shall treat as confidential and that shall not be considered a 28 public record under AS 09.25.110, identifying the brand and brand styles of the 29 cigarettes, the quantity of each brand style of cigarettes, and the person or persons to 30 whom the cigarettes have been shipped. In this section, "calendar quarter" means each 31 of the three-month periods ending March 31, June 30, September 30, and 01 December 31. 02 Sec. 43.50.420. Enforcement. For the purpose of enforcing AS 43.50.400 - 03 43.50.450, the commissioner may share information with any local, state, or federal 04 government agency. 05 Sec. 43.50.430. Applicability. AS 43.50.400 - 43.50.450 do not apply to 06 cigarettes 07 (1) imported into the United States for personal use free of federal tax 08 or duty, or voluntarily abandoned to the United States Secretary of the Treasury at the 09 time of entry; or 10 (2) sold or intended to be sold as duty-free merchandise by a duty-free 11 sales enterprise in accordance with the provisions of 19 U.S.C. 1555(b); however, 12 AS 43.50.400 - 43.50.450 apply to duty-free cigarettes that are brought back into the 13 customs territory for resale within the customs territory. 14 Sec. 43.50.450. Definitions. In AS 43.50.400 - 43.50.450, unless the context 15 otherwise requires, 16 (1) "cigarette" has the meaning given in AS 43.50.170; 17 (2) "manufacturer" has the meaning given in AS 43.50.170. 18 * Sec. 2. AS 43.70.075 is amended by adding new subsections to read: 19 (g) A person who is required to hold a business license endorsement under this 20 section, or who is required to be licensed or agrees to be licensed under AS 43.50.010, 21 or an agent or employee of the person, may not 22 (1) sell cigarettes to another person unless the cigarettes are sold in 23 groups of at least 20 and the cigarettes are in the manufacturer's original cigarette pack 24 or contained in a cigarette carton or box; or 25 (2) sell or possess cigarettes if the cigarette package 26 (A) differs in any respect from the requirements of 15 U.S.C. 27 1331 - 1341 (Cigarette Labeling and Advertising Act) for the placement of 28 warnings or of any other information upon a package of cigarettes that is sold 29 within the United States; 30 (B) is labeled "For Export Only," "U.S. Tax Exempt," "For Use 31 Outside U.S.," or with similar wording indicating that the manufacturer did not 01 intend that the product be sold in the United States; this subparagraph does not 02 apply to cigarettes sold or intended to be sold as duty-free merchandise by a 03 duty-free sales enterprise under 19 U.S.C. 1555(b); however, this subparagraph 04 does apply to duty-free cigarettes that are brought back into the state for resale 05 in the state; 06 (C) has been altered by adding, masking, or deleting wording 07 described in (B) of this paragraph. 08 (h) A violation of (g) of this section is an unfair or deceptive act or practice 09 under AS 45.50.471. 10 (i) The commissioner or the commissioner of revenue may seize cigarettes that 11 do not comply with this section. After notice and an opportunity for a hearing, the 12 commissioner or the commissioner of revenue shall destroy cigarettes seized under this 13 subsection. 14 (j) A person who violates (g) of this section is guilty of a class B 15 misdemeanor. 16 * Sec. 3. AS 44.29.020(a) is amended to read: 17 (a) The Department of Health and Social Services shall administer the state 18 programs of public health and social services, including 19 (1) maternal and child health services; 20 (2) preventive medical services; 21 (3) public health nursing services; 22 (4) nutrition services; 23 (5) health education; 24 (6) laboratories; 25 (7) mental health treatment and diagnosis; 26 (8) management of state institutions, except for adult penal institutions; 27 (9) medical facilities; 28 (10) adult public assistance; 29 (11) Alaska temporary assistance program; 30 (12) child welfare services; 31 (13) general relief; [AND] 01 (14) licensing and supervision of child care facilities ; and 02 (15) a comprehensive smoking education, tobacco use prevention, 03 and tobacco control program; to the maximum extent possible, the department 04 shall administer the program required under this paragraph by grant or contract 05 with one or more organizations in the state; the department's program must 06 include 07 (A) a community-based tobacco use prevention and cessation 08 component addressing the needs of youth and adults that includes use of 09 cessation aids such as a nicotine patch or a nicotine gum tobacco 10 substitute; 11 (B) youth-based efforts that involve youth in the design and 12 implementation of tobacco control efforts; 13 (C) anti-tobacco counter-marketing targeting both youth and 14 adult populations designed to communicate messages to help prevent youth 15 initiation of tobacco use, promote cessation among tobacco users, and 16 educate the public about the lethal effects of exposure to secondhand 17 smoke; 18 (D) tobacco use surveys of youth and adult populations 19 concerning knowledge, awareness, attitude, and use of tobacco products; 20 and 21 (E) an enforcement component .